Wednesday, April 13, 2011

Cisco kills Flip & Reorg consumer business

Finally, Cisco took the right step. As per channelinsider, Cisco is killing the flip and going to do some changes to consumer business. As I said here, even a person on street like me couldnt understand what cisco is trying to do. Not quite sure how they managed to convince the top management, board to invest close to half a billion dollars in to Flip business (pun unintended).

Recently cisco done some changes to its partners too, and this will affect quite a number of partners. This is critical for partners as the discount levels are directly based on their status (gold, silver etc). But I believe this is done in the right direction. Cisco need to move quickly from just selling 'routers & switches' to provider of 'solutions' that can be integrated in to the service provider/enterprise networks.

From their results, the biggest drop is within the SP sector. I'm sure NOW is the right opportunity for them to improve their sales tactics, and solutions to provide solutions for LTE networks. Today the big players in LTE are Ericsson, ALU, NSN, Huawei & ZTE. With the exception of NSN rest of them have developed a IP base within the last five years and they are offering the 'end to end solutions' to Service Providers. So Cisco cannot rely on it's past practices to sell the routers to bridge the mobile equipment.

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